Which of the Following Statements Correctly Differentiates Between a Monopoly

Which of the following statements correctly differentiates between a monopoly and a perfectly competitive firm?

A) A perfectly competitive firm faces an upward-sloping demand curve, whereas a monopoly faces a horizontal demand curve.
B) A perfectly competitive firm sets its product price at its marginal cost, whereas a monopoly sets the price above its marginal cost.
C) A perfectly competitive firm faces a horizontal demand curve, whereas a monopoly faces an upward sloping-demand curve.
D) A perfectly competitive firm sets its product price above its marginal cost, whereas a monopoly sets its product price equal to its marginal cost.

Correct Answer:

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